Professional Documents
Culture Documents
Department of Fisheries
Matshya Bhaban Ramna, Dhaka
January 2006
Table of contents
SHRIMP STRATEGY 1 Table of contents 2 Summary i 1 Status of the Sector
Introduction..........................................................................................................................1 The role of shrimp sector development in boosting pro-poor growth .................................2 Shrimp production in Bangladesh........................................................................................3 Post harvest marketing and processing ................................................................................6 International perspectives ....................................................................................................7 Private Sector .......................................................................................................................8 Constraints in shrimp sector development ...........................................................................9 Strategy development.........................................................................................................10
Policy Environment 11
Policy support ....................................................................................................................12 Policy conflict ....................................................................................................................12 Policy Implementation, Act Enforcement and Regulation ................................................15
The Shrimp Sub-sector Strategy 16
Specific objectives .............................................................................................................16 Development Targets .........................................................................................................18 Road map for strategy implementation..............................................................................19
Regulatory Framework 20
Rationale for a regulatory framework................................................................................20 Shrimp culture production .................................................................................................21 Shrimp Area Development and Zonation ..........................................................................22 Wild Post Larval Collection...............................................................................................24 Hatchery Certification and Registration ............................................................................26 Brood Stock Collection......................................................................................................27 Marine Shrimp Harvesting.................................................................................................28 Quality Control ..................................................................................................................29
Support to the Industry 34
Shrimp Production Support measures................................................................................34 Extension............................................................................................................................35 Research .............................................................................................................................37 Education ...........................................................................................................................39 Infrastructure development ................................................................................................40 Input support ......................................................................................................................41 Marketing ...........................................................................................................................41 Disease Monitoring and Prevention...................................................................................42 Biodiversity and Environmental Conservation ..................................................................43
Collaboration and Participation 44
6.1
7
7.1
8
Summary
A. Introduction
The export of shrimp and prawn is an important contributor to economic growth in Bangladesh generating more than US$300 million annually. In the interim Poverty Reduction Strategy Paper (iPRSP), shrimp sector development is emphasised as an important means of reducing poverty and boosting pro-poor growth through increasing exports and improving export performance and competitiveness. The sector is currently the second largest source of export earnings, selling to major markets in the United States, Japan, United Kingdom, Netherlands, Belgium and France.. There is considerable potential for increasing export earnings further but this requires that existing deficiencies are addressed and the industry positions itself more effectively to respond to market demands and the changing international trading environment. This document outlines a strategy for the shrimp sub-sector based on wide consultations with stakeholders and existing analyses of the sector. The shrimp sector sub-strategy is one of seven subsector strategies that are being developed as part of the National Fisheries Strategy to provide a framework for implementing the National Fisheries Policy. The strategy adopts a comprehensive approach covering many areas and sets out a series of objectives and targets. Within the strategy document several policy and sectoral concerns are set out based on the priorities identified by the stakeholders during the consultations and analysis of the issues. These are addressed through a series of specific objectives developed within the context of a regulatory framework and measures to support the private sector. The strategy also outlines the changes needed to develop an effective institutional mechanism to co-ordinate sector development, monitor progress and provide regular and timely feed back to articulate actions needed to achieve the proposed targets. The strategy is further elaborated on in the main sections of this document and a detailed Action Plan will be prepared once the strategy is finalised. B. The strategy
The overall mission statement for the shrimp sector sub-strategy is shown below. A shrimp sector recognised internationally for its high quality shrimp produced using socially responsible and environmentally sustainable production methods, with support to all stakeholders to ensure its development to its full potential. Within the strategy, a series of specific objectives have been developed relating to: a proposed regulatory framework; support measures for industry; collaboration and participation of stakeholders; structures, staffing and resources; and planning, monitoring and evaluation. Regulatory framework The rationale for developing a more comprehensive and updated regulatory framework is threefold; to ensure that Bangladesh positions itself proactively to meet current and forthcoming international standards on food safety and traceability, that the industry is economically and environmentally
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sustainable, and that all aspects of the supply chain operate in a socially responsible manner ensuring benefits to all local community members. The regulatory framework therefore provides a set of standards, legal and administrative procedures which will foster good management of shrimp production in Bangladesh in order to maximize the economic development for the country whilst ensuring an equitable distribution of benefits and sustainable use of natural resources. The regulatory framework deals with all areas of shrimp sector development including: production, quality control, marketing and export, environment and social aspects, and for effective management, requires strong interaction and coordination involving several GoB organisations. The regulatory framework is not just a government set of laws and rules, but an industry lead set of guidelines to determine good practice. The overall goal of the regulatory framework is: In support of the Private Sector ensure the development and implementation, by all stakeholders, of a legal and regulatory framework that will lead to sustainable and equitable development of the shrimp sub-sector. The regulatory framework comprises 7 specific objectives:
1 Shrimp Production
To put in place the regulations to ensure the sustainable increase in the supply and value of shrimp from culture systems enhancing earnings for farmers, improving the socio-economic conditions of local communities in shrimp farming areas and increasing foreign exchange earnings.
To ensure that shrimp production takes place only in areas where the Area Development and prevailing agro-ecological conditions are suitable and that it does not adversely affect the interests of other land and water user groups or Zonation cause environmental harm. This is applicable for both the freshwater and the coastal shrimps Wild Post Larval Collection Hatchery Certification and Registration To develop a management plan that regulates the collection of wild fry to conserve the resource whilst balancing the needs for livelihood protection of shrimp fry collectors. To establish a sustainable hatchery sector which through registration and certification ensures quality management of the hatchery process and ensure adequate production of post larvae which meets, and is responsive to, the growers demands for quality (with assurance of health and viability), without causing detriment to the environment. To develop a sustainable management plan for brood stock collection that ensures hatcheries are able to produce quality post larvae to meet the needs of the sector without causing detriment to the environment or wild stocks. To regulate and stabilise the marine shrimp trawling efforts to sustain its viability whilst ensuring that marine resources are conserved through compliance of regulations and the control of artisanal ESBN fishing. ii
Quality Control
7.1
To raise export earnings by improving the quality of shrimp products to ensure that shrimp is produced in compliance with the food safety or HACCP rules, Bio-Terrorism act of USA, SPS measures of the WTO, the Human Rights and Labour rules and environmental codes as well as, improving the traceability of shrimp products at all points of the value chain from hatchery through to farm, marketing, and processing factory. The strategy will also look for adoption of the measures to remove the Nitro furan and Chloramphenicol from our shrimps. To establish a quality control system for the industry that combines the authority of Department of Fisheries in quality assurance together with the need for self-regulation and quality control by the private sector. To provide effective Government quality control procedures that will guarantee shrimp produce placed on the market is safe to human health and exported shrimp produce complies with the relevant food laws in importing countries. To upgrade and maintain an export licensing system that ensures exported shrimp products fully comply with international food laws. To provide a national license and registration system for all shrimp operators from hatcheries through to farmers, processors and exporters to ensure traceability within Bangladesh shrimp supply chains.
7.2
7.3 7.4
Support to industry The industry is controlled by the private sector, and its growth can only be directed through support and the regulation of its activities. This can either be by the industry itself or by support and controls provided to the industry by the government and other support services such as educational institutes and the NGO sector. The overall goal of supporting the industry is: In support of the Private Sector, provide the services that will lead to a sustainable and equitable development of the shrimp sub-sector. More broadly the aim of shrimp culture production is to: To sustainably increase the supply and value of shrimp from culture systems enhancing earnings for farmers, improving the socioeconomic conditions of local communities in shrimp farming areas and increasing foreign exchange earnings. Within the support strategy there are 8 specific objectives 1 Extension To form an effective two way flow of knowledge and information that will enable all stakeholders to develop the sector through the prudent application of knowledge and create a pool of fisheries technicians like health technicians and the Block Supervisors of DAE, to cater to the needs of the sector . iii
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Research
To ensure the relevance of research to the needs of the sector and to develop mechanisms which will improve the uptake and application of key findings. To ensure that the development of the sector is supported by suitably qualified human resources who are equipped with the necessary skills and expertise. To support the establishment of infrastructure, in areas identified and demarcated for production of shrimp, enabling improved water management and marketing of shrimp. To ensure high quality inputs at affordable prices are readily available at every stage of the shrimp supply chain. To improve the overall position of the Bangladesh shrimp industry in a competitive global market, increasing market share and revenue from shrimp production. To develop an effective disease surveillance, notification and control system to reduce the spread of disease and improve the management of outbreaks of disease. To preserve the biodiversity and environment of coastal aquatic habitats while not depriving people of the right to make a living in those areas.
Education
5 6
Collaboration and participation The overall goal of promoting collaboration and participation is: To ensure the participation of all stakeholders who, through their collaboration and clear understanding of their role, will contribute to a sustainable and equitable development of the shrimp sub-sector. The complexity of the shrimp sector dictates that its development requires effective collaboration and co-operation of many Government departments, private sector organisations and civil society. The regionalised spread of shrimp operations means also that the approach adopted should be based on decentralisation of the decision making process. The Department of Fisheries has the broadest mandate to support the sector. Its role in regulating the industry from brood collection, hatcheries, production and processing and its support role establish it as the institution best placed to coordinate the sector. Regular interaction and coordination with other Government agencies including Ministry of Water Resources and Bangladesh Water Development Board, Ministry of Land, Ministry of Commerce, and Local Government as well as with NGOs and private sector bodies and trade associations is also required. iv
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Participation of all stakeholders is particularly important to ensure all resource user groups are represented during the planning and implementation of sector development activities especially coastal land zonation and infrastructure development. Structures, Staffing and Resources The overall goal of the structure, staff and resources strategy is to: Develop and utilise the staff resources in the most effective fashion to support the services and regulatory enforcement required to develop the sector in a sustainable and equitable way. The Department of Fisheries does not have the required strength and capabilities to carry out all the functions required of it. There is a need to strengthen and reorganise the Department of Fisheries to support the policy and provide the field level support required to guide development of the shrimp sector. To effectively discharge the functions required to co-ordinate the implementation of the strategy, the Department of Fisheries Shrimp Wing should be reorganised in order to focus on key strategic areas. This new focus will require the Wing to perform a variety of functions including supporting and co-ordinating with private sector and NGOs, developing the necessary legal framework to regulate the shrimp sector; co-ordinating with other line ministries and advising on key issues (such as land zonation, food safety, taxation and fiscal measures, environmental and social protection); monitoring private sector shrimp related activities to track the economic, environmental and social status and supporting participatory land use planning; assisting the development of a disease prevention, surveillance and control system for the industry; supporting the hatchery sector in developing quality, disease free fry; and advising the Shrimp Mohal Management Policy committees. . This will require that the Shrimp Wing is supported by key individuals at Headquarters and at field level to plan, execute and monitor shrimp sector activities. The Wings capacity to address the social aspects of brackish water production also needs to be increased and better linkages established with the NGOs which have experience of these issues. The Shrimp Wing in the headquarters will be restructured, headed by a Director, under the control of the Director General. It will be responsible for planning, execution, monitoring of shrimp sector activities and for providing support and coordination to the private sector for sustainable development of countrys shrimp sector. The Director will head a Committee comprising concerned Deputy Directors, Regional Officers, and District Fishery Officers. The committee will identify shrimp sector issues, suggest measures for addressing the issues, co-ordinate and establish linkage with private sector organizations and provide support to agencies involved in the sector. The headquarters activities will be supported by the Monitoring, Evaluation and Planning wing proposed under the Monitoring and Evaluation Strategy. The Regional Shrimp Officer (redesignated), Coxs Bazaar and Kulna shall be responsible for supervision and monitoring of all shrimp unit activities in the two regions including those of the private sector hatcheries, nurseries, fry collection and processing plants. The Extension Units in both the regions shall be headed by the v
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DFOs and supported by SUFO/UFO. Due to their overlap, staff supporting the Marine sector, Quality Control and Aquaculture Extension will also help implement aspects of this strategy.
Planning, Monitoring and Evaluation Collecting and evaluating information requires a high degree of co-operation from all stakeholders; from the private sector, who dominate the sector; to the poor, who are involved at the periphery. Currently, information is collected from a range of sources and varies in accuracy. The quality of information needs to be improved to ensure that the sector can develop through sound planning and management. The overall goal of planning, monitoring and evaluation is: To ensure that the objectives of the sector are being met and that management and planning of the sector is based on sound information collected and evaluated from all stakeholders. Collecting information through a range of different sources enables planners to build crosschecks into the information thus improving its reliability. The most accurate information is thought to come from statistics of shrimp exported for each of the different production systems. This, however, only relates to exports and does not cover local sales and consumption. Information on production levels from the different systems and areas is not accurate as there is no accurate baseline of resources allocated to shrimp production. This, as in other sub-sectors of fisheries production, needs to be a priority so that development can be accurately assessed. One of the major concerns of the industry is the image projected to the buyers abroad. In order to improve this, reliable information must be available on issues of social equity and environmental status. This should be used constructively to address issues of concern or provide importers and buyers of the true status of the sector and refute and prevent the spread of false information. The Planning, Monitoring and Evaluation of the sector are tied in closely with the strategy advocated under the Planning, Monitoring and Evaluation strategy already formulated. This recognises the different sources of information, and also focuses on the required capacity to utilise the information for effective management. The specific objectives of planning, monitoring and evaluating the sector are shown below. Establish a baseline of the industry, on all aspects from fry production, collection, and production, processing facilities. Assess improvements in production levels under different production system and benefits from different management systems including economic assessment of merits of different systems and risks associated with intensification. Assess the impact of extension and advisory services including developments in organisation and implementation of extension. Determine the type of ownership of industry and production units and evaluate the impact of gher licensing. Monitor economic generation from the export of shrimps and export statistics including monitoring the value added through processing.
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C.
Establish the biodiversity and environmental status of resource and the impact of developments. Monitor the impact of regulations on environmental pollution and loss of biodiversity. Monitor and evaluate the distribution of benefits from the sector Monitor the impact of regulations on quality, numbers of shipments accepted or rejected and economic impact of rejected shipments. Monitor disease levels and the impact on production. Evaluate the impact of support to the industry by government initiatives Development targets
The objective of the strategy is to set the long-term focus for the sector. In this process a series of targets have been defined to guide the development of the sector.
Current Bagda: 200 kgs ave. Golda: 375 kgs ave White and Brown:53 kgs ave Bagda: 170,000 ha Golda: 40,000 ha Bagda: 4.5ha (on downward trend), Golda: 0.3 ha (ranging from 0.15-2ha) Annual production volume tons5 Bagda: 34,000 tons Golda: 15,000 tons White/Brown 9,000 for export Golda: 80,000 ha Bagda: 2 ha Golda: 0.3 ha Bagda:76,000 tons Golda: 40,000 tons White/brown: 10,000 tons Shrimp trawler: 3,500 tons Capture Total: 60,000 tons Inland: 40,000 tons Artisanal: 20,000 tons Total US$ 1,000 million for 73,000 tons Bagda: US$685 million6 for 50,000 tons Golda: US$300 million7 for 18,000 tons White and Brown US$15 million for 5,000 tons Bagda: Tk160,0009 Target 2010 Bagda: 400 kgs Golda: 500kgs White and Brown:53 kgs ave Bagda: 190,000 ha3 (May rise slowly as part of a rice/bagda rotation).
Farm yields kg/ha per year1 Area under Cultivation ha2 Average gher Size ha4
Shrimp trawler: 3,186 tons for export Artisinal Capture Domestic consumption Export Earnings (DoF statistics) Total: 84,773 tons Inland: 55,965 tons Artisanal: 28,808 tons Total EPB 2002-2003: Tk17,199 million (US$297 million) Bagda: US$233,million for 23,409 tonnes Golda:: US$54 million for 6,688 tons White and Brown US$10 million for 3,344 tons Mean
1 2 3 4 5 6
Source: Fisheries Sector Review 2003. Source: Fisheries Sector Review 2003.
Source: DOF 2003 from production gains and value addition with improved post harvest handling and processing 7 from production gains, doubling of land under cultivation and value addition from improved post harvest handling and processing and sales to niche (organic) markets.
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Current Net revenue per hectare: Tk37,567 Golda: Tk110,000 (includes finfish). Net revenue per hectare: Tk75,000
Target 2010 Net revenue per hectare: Tk100,00010 Golda: Tk220,00011 Net revenue per hectare: Tk180,00012 Total employed persons Full time equivalent Bagda: 190,000 Golda: 120,000 Marine: 3,000 Others: 15,000 Total: 328,00014 Fry Collectors: 100,000 Bagda: Hatcheries: Capacity: Production: Wild Golda: Hatcheries Capacity: Production: 500 5,000M 5,000m 1,000,000 313,000
600,000 156,000
Bagda: 94,342 Golda: 58,333 Marine: 3,000 Others: 10,265 Total: 165,904 Fry Collectors: 185,000 Bagda: Hatcheries: 55 Capacity: 10,000m Production 2004: 5,000M Market demand at 2004 utilisation rates: 5,000M PL. Wild PL: 2,000 M Golda: Hatcheries: 30 Capacity: 50M Production 2004: 50M Market demand at 2004 utilisation rates: 500M PL
D.
Three important elements are considered necessary in transforming the Governments current approach to shrimp sector development into an effective strategy: (i) continuous and effective interaction and consultations with all stakeholders to make it dynamic with capability to address on-going development and emerging priorities along with consensus to guide the development efforts of all actors including the Government, NGOs, civil society and development partners in an integrated manner; (ii) devising and implementing a time-bound action plan to support the strategic thrust of the strategy; and (iii) installing an effective institutional mechanism to monitor the progress and provide regular and timely feed back to articulate actions needed to achieve the proposed targets.
8 9
From production gains From production gains, reduced input costs and improved management techniques 11 From production gains 12 From production gains, reduced input costs and improved management techniques
10 13
Job creation through increased no of Golda farms, post harvest trading opportunities, hatchery fry trading, golda hatcheries and feed factories.
15 16
14
Full time equivalent employment: Bagda farms(94,342), Golda farms(58,333), Processing factories(3,260), Post harvest Farias(2,205), Depot operators(1,812), Hatchery fry traders(746), Bagda hatcheries(536), Golda hatcheries(231), Commission agents(167), Feed factories(115). Source: Fisheries Sector Review 2003.
Source: Fisheries Sector Review 2003. Source: Fisheries Sector Review 2003.
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E.
Supporting information
Status of shrimp production in Bangladesh There are three sources of shrimp products in Bangladesh: the marine capture fishery, brackish water aquaculture and fresh water aquaculture. Most of the production (62%) derives from brackish water cultivation of the Tiger Shrimp on 170,000ha land in the coastal zone with yields averaging 150-200kg/ha. However, production of the other main commercial species, the Giant Freshwater Prawn, has increased dramatically over the last 10 years: the cultivation of this species accounts for 23% of the production from 30,000ha of land in low-lying floodplain areas mainly in the south west region (with yields averaging 250-340kg/ha) but is expanding rapidly to other areas. Production from the marine fishery accounts for around 6.25% of the total exportable production, this figure has stabilised and is unlikely to increase substantially in the near future. Shrimp farming, particularly of the freshwater species where there is significant scope for further horizontal expansion, represents the greatest potential for increasing shrimp production in Bangladesh. Farming shrimp and prawn can be highly profitable compared to other livelihoods options available in rural areas of Bangladesh but it is associated with high levels of risk due to fluctuations in the international market (non-tariff barriers and price changes), disease and climatic conditions (mainly flooding). The culture systems in Bangladesh use low-input, extensive methods and often integrate shrimp and prawn production with other crops such as rice, vegetables, finfish and salt depending on the local agro-ecological conditions. This reduces farmers exposure to risks due to changing conditions in the market place, extreme climatic events and disease. These systems also tend to be more environmentally benign than more intensive operations and provide an important income for poor rural households in remote areas where alternative livelihood options are limited. However, production efficiencies are low due to high mortality rates of stocked fry (the most expensive input), poor management techniques and a lack of infrastructure in coastal areas. Given the existing production inefficiencies, the potential to boost economic growth through increased production from improved extensive farming systems is considered to be high. It is interesting to note here that fiscal policy has provided incentives to the processing and hatchery (bagda) sectors to the extent that they now operate at over-capacity yet the production from the farming sector is stagnating due to limited institutional support and poor infrastructure. Supply of fry for shrimp cultivation The majority of fry for brackish water farms are now sourced from hatcheries though a residual demand for wild fry exists due to perceived lower levels of viability and prevalence of disease in hatchery fry. The catching of shrimp fry or post larvae is currently banned under the Protection and Conservation of Fish Rules but the ban is not widely enforced. Despite the expansion in hatchery capacity, the emphasis has been on producing fry for brackish water shrimp farms while hatchery production of fry for freshwater prawn cultivation fulfils only 10% of the current demand resulting in a heavy reliance of these farms on the supply of wild fry. However, new hatcheries are being developed to meet this demand and it is anticipated that the wild fry fishery will eventually decline to marginal levels. The bagda hatcheries rely on the supply of broodstock collected from the marine fishery. Currently, the methods used to collect broodstock are believed to result in high levels of stress on the shrimp which are associated with high mortality rates and high levels of white spot viral disease. A lack of ix
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quarantine procedures and disease screening along with inadequate labelling of hatchery products mean farmers have no way of discriminating for healthy fry. Improved production and expansion of shrimp culture. Present production levels are some of the lowest to be found and the opportunities for converting land into bagda shrimp estates remains extremely limited. If production is to be increased then it must be done using existing land resources by integrating shrimp into existing cropping systems and by improving the management so that yields can be raised. The promotion of a rice shrimp rotation has lead to improved unit area production with both crops benefiting. This has in part been due to the identification of new rice varieties that are more tolerant to saline conditions, but also due to improved fertility of the rice fields and better water management. The shrimp have benefited through better water management and reduced incidences of disease. The expansion of gher areas under golda is expected to increase rapidly as this does not displace the rice crop, but increases the returns that the farmers can make from the land. This has proved especially beneficial to small land owners who have seen this as a way of escaping poverty. Post harvest and processing of shrimp The post harvest chain consists of numerous intermediaries and because production is structured around thousands of small-scale farms, the product is aggregated at several levels before reaching the processing plant. This often results in a deterioration of product quality leading to lower returns on investment than could be achieved with higher standards of post harvest handling, transport and marketing between the farm and the processing plant. The processing sector operates at 80% over-capacity due to fiscal and financial support provided by the Government17 which encouraged processing plant construction. The over capacity is also as a result of a shortage of raw product. The supply of shrimp products to processing plants is tightly controlled by traders with many plants competing for a limited amount of product. Vertical linkages within the long supply chains are limited and the transmission of market signals from the buyer and processors to the farmers is therefore weak. As a result, the production sector is slow to respond to changes in market conditions. Moreover, poor law and order in shrimp producing areas constrains the development of stronger linkages between farmers and processors and raises the transaction costs for business operators engaged in the input and product market chains. The over capacity can be tackled in two ways by a) increasing the quantity of shrimp available to processors which is a major aim, but also by b) ensuring that the processing sector develops at rate linked to production and not due to unrealistic incentives. These unrealistic incentives need to be removed leaving behind a core of processors with the best interests of the sector in mind. An increase in vertical integration must take place so that quality can be improved by reducing harvesting to processing times. This will also enable improved traceability of the product which will be a prerequisite for future trading.
17
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Trends in international markets and implications for the shrimp industry in Bangladesh As a globally traded commodity, shrimp products from Bangladesh and the conditions under which they are produced must comply with international standards which are changing to adapt to new issues of bioterrorism, food safety and traceability. Growing concerns over food safety have prompted the introduction of international Codex18 standards and mandatory HACCP19 requirements to improve quality. The shrimp industry must also comply with international standards arising from the World Trade Organisation Agreement on Sanitary and Phytosanitary Measures (SPS)20. Trade restrictions are appearing in the form of antibiotic residue limits and the filing of anti-dumping law suits by the US shrimp trawling industry. At the same time, NGOs are calling for tighter controls on environmental and social issues resulting in increased consumer awareness of these issues in importing countries and there is growing pressure for the shrimp industry to attain higher standards of sustainable and equitable shrimp production. This will intensify with the introduction of eco-labelling schemes. Shrimp producers elsewhere are increasingly undertaking voluntary certification (ISO 9000) and registering with Codes of Conduct schemes. Shrimp farming is now the target of several private certification schemes which are intended to respond to consumer and buyer demand for a sustainably produced high quality product. However, there are significant costs involved in complying with these codes and small-scale producers operating low input farms may face difficulties in participating in such market chains. This is further constrained by a lack of organisation within the smallholder sector, weak forward linkages to processors and a limited capacity to comply with emerging standards. In responding to these emerging global trends the sector needs to transform from a fragmented industry into a more co-ordinated and integrated industry to improve traceability of supply chains. Increasing backward and forward linkages in supply chains is a key element to this (mentioned as a priority area for action in the iPRSP) and also has the advantage of increasing the flow of technical information throughout supply chains to improve management practices. Policy environment There are a multitude of policies which guide the development of the sector. The National Fisheries Policy and the National Water Policy are the two most relevant policies. However, though the policies were introduced in 1998, they are not yet fully operationalised through laws, regulations, and strategic and action plans.
The codex Alimentarius Commission has developed standards, guidelines and recommendations for food additives, veterinary drugs and pesticide residues, contaminants, methods of sampling and analysis and hygiene codes and guidelines. Hazard Analysis Critical Control Point identifies specific hazards and measures for their control to ensure food safety. The system sets out principles and key hygiene controls at each stages of the food chain from primary production through to final consumption. The WTO Agreement on Sanitary and Phytosanitary Measures allows countries to restrict trade in order to protect human, animal and plant life and prevent the transmission of diseases.
20 19
18
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The National Fisheries Policy emphasises production and utilisation of fisheries resources; poverty alleviation and employment generation; fulfilling animal protein demand and ensuring public health; economic growth; and biodiversity conservation. The policy formulates a series of guidelines (Clause 7), to increase the shrimp production and export emphasising: coordination of shrimp and paddy cultivation; advanced traditional modes of shrimp production; the role of the private sector; hatchery technology; wild fry collection; infrastructure; and hygiene and quality control. Emphasis is also given to management of the sector, including the expansion of the Central Shrimp Cell of the Ministry of Fisheries and Livestock to field levels, and coordination with the ministries of Environment and Forest. The National Water Policy is relevant to the shrimp sector as it strongly recommends integrated and balanced development of the water resources of the country to meet the requirements for economic development, poverty alleviation, food self-sufficiency, public heath and security, improved living and protection of the natural ecosystem and biodiversity. The Shrimp Mohal Management Policy (1992) provides for the identification and declaration of khas land as shrimp estate. However, there is a conflict with a number of other Government policies including: the Private Fisheries Protection Act 1899 law which protects the rights of landowners who dont like to lend their land for shrimp farming and the Environment Policy which aims to prevent salinity increases in land. There is also a conflict with the iPRSP which emphasises the effective distribution of khas lands to landless families and the National Land Use Policy (2001) which provides for the allocation of land for shrimp culture and land zoning on the basis of land topography, tidal inundation, water salinity, soil quality and other environmental factors, with the active participation of local people. Other relevant policies include the Industrial Policy (1999) which declared the frozen food industry a thrust sector and the Export Policy (1997-2002) which provides for the promotion of shrimp export. The National Environment Policy (1995) is also relevant since it seeks to protect the environment and emphasises the need for appropriate environment and development of fisheries whilst ensuring that fisheries development activities do not create any adverse impact on the mangrove forests and other ecosystems. The capture fishery for shrimp is regulated under the Marine Fisheries Ordinance (1983). The government has declared four places in the Bay of Bengal as marine reserve areas to ensure the safe breeding of fish and shrimp.
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resources. The production sector is also beset with problems of extortion and criminal activities which constrain its growth and development as well as growing degrees of corruption which hamper the implementation of quality standards and subvert existing regulations. The corruption and extortion have also led to high transaction costs for businesses involved in shrimp production and trade. This is part of a general country wide trend noted as a major constraint on poverty reduction in the iPRSP, the emergence of mastanocracy (local terrorism) imposing considerable transaction costs on normal economic activity has been singled out as a major barrier to private investment and socially secure life. To add to these problems recent legal cases have been brought against some shrimp producers from several countries including Thailand, Vietnam and China by the US shrimp trawling industry. These so-called anti-dumping law suits are based on claims that imported shrimp are being subsidised and constitute unfair competition for the domestic shrimp industry. Bangladesh has so far escaped any legal action due to the low volumes it exports to the US compared with other countries. Within the industry in Bangladesh there is growing appreciation of the impact of the poor image that the industry has to overcome. Some of these issues are more relevant to Bangladesh than others, but it is important to demonstrate that the concerns are being addressed and that the consumers can have a confidence in the industry and the shrimp products exported from Bangladesh. In summary, substantial efforts are needed to promote productivity gains through increased efficiency in production, post harvest and marketing segments. Although the challenges faced by the sector are immense, through a co-ordinated determined effort, they can be overcome and shrimp can become an increasingly important part of the national economy.
The existing production inefficiencies in the farming sector also provide an opportunity to boost pro-poor growth. Measures could include providing farmers with technical support to increase productivity, organisational strengthening to create opportunities for collective purchasing and selling of products, and strengthening vertical linkages to input suppliers and post harvest operations. In the brackish-water sector, there are a number of social issues that require attention if pro-poor growth is to occur. In Bangladesh, there is widespread non-compliance with existing laws especially relating to the abuse of leasing agreements and land grabbing in shrimp farming areas. There are significant barriers that block the entry of poorer entrepreneurs. Failure to address these barriers and continuing human rights abuses will not only restrain pro-poor growth but is also likely to adversely affect export earnings for the whole sector. This is an area that requires interaction and cooperation between Government, civil society organisations and industry.
Mainly through intensification leading to increased unit yields Stakeholders Large boat owners Large to medium land and processors owners although farm sizes are steadily declining Limitations Target species Suitable area for expansion, disease, social problems Poverty Will generate little Limited opportunities and job loss through Alleviation additional hatchery post larvae employment Environment Catch changed from tiger to and Biodiversity brown shrimp Issues of loss of biodiversity (post larvae), increased salinity
Initially the target species was tiger shrimp (bagda), but due to over fishing of bagda the trawlers have now targeted brown shrimp which are more abundant, but less commercially attractive. The change has also brought the shrimpers into conflict with other smaller fishermen as they undertake a lot of their activities in shallow water. They are supposed to be limited to operate in waters beyond the 40 metres depth mark. The commercial trawlers have the capacity to freeze their catch on board, but have only limited storage capacity. This raises another problem as they do not have the capacity to store fish caught incidentally which are then often dumped as it is more economical to do this than bring them to port. This waste has led to complaints by environmentalists and other anti-shrimp lobbyists. Marine shrimp trawling has also been blamed for destroying breeding grounds through its damage of the sea floor, from destructive trawl practices. This has gone on in areas that have even been assigned as marine sanctuaries. There is also concern that because of the impact of trawlers, the brood stocks necessary for land based production of shrimp are being rapidly depleted and might constrain further development of this sector. The use of trawlers to collect brood for the shore based hatcheries for bagda also causes concern as anecdotal information suggests that the numbers of brood are in decline and the quality of those caught is also declining. This is thought to be due to the stress that the trawling places on the brood. Alternative means for collecting brood will need to be researched. The activities of the artisanal sector on the marine catch is also estimated to be significant. Up to 13,000 tons of juveniles are caught by ESBN fishers every year which substantially reduces the potential harvest of adults and is also likely to have an impact on brood availability as well. Quality is not seen as an issue for marine shrimp, but much of the shrimp is sold as block frozen with little value added which limits the returns from this sector. The principal problems associated with the marine shrimp sector are: no clear understanding of the impact of trawling on the sustainability of the marine shrimp fishery, intrusion of trawlers into areas assigned to smaller mechanised boats, the impact of brood collection on their availability and sustainability of collection, the impact of trawling on the by catch and the limited returns by selling the product in its basic form (i.e. block frozen).
under duress rather than by consent. Conflict also arose over non-payment of dues and refusal to hand back the land at the end of July (a legal obligation for the lessee) so that the owners could cultivate rice during the rainy season. However, the system was not without risks and in attempts to intensify production, infection from the White Spot Syndrome Virus (WSSV) became a major limitation, drastically reducing yields. This caused many of the larger investors to pull out allowing small farmers to regain control over their resource who through improved management could limit some of the stress related factors which allows for WSSV to become a problem. Production now is still predominantly undertaken on an unimproved extensive scale. Some progressive farmers are trying to improve production through the development of infrastructure and improved management of their ghers. If this part of the industry is to expand, this must be the principal route as access to additional land will be restricted, but it must be done carefully as the risks of failure are high. The potential for environmental pollution also needs to be assessed. The production of bagda has developed through an increase in the number of local hatcheries able to produce vast numbers of post larvae. The availability of hatchery produced post larvae has now increased to a level beyond saturation and faces serious marketing problems. This is compounded by some farmers preference for wild post larvae due to their alleged vigour. This over capacity is largely due to a fiscal policy which has provided cheap loans and tax breaks. Most of bagda post larvae are produced by hatcheries located on the south east coast in Coxs Bazaar and are transported by air to the main grow out regions in the south western Khulna region of Bangladesh. This is expensive and attempts to reduce costs are being examined. One option is to relocate the hatcheries closer to the grow out areas but this runs into problems due to the lower salinity levels prevailing in this region compared with Coxs Bazaar. Another option under consideration is to produce naupli (1st stage immediately after hatching) which are then shipped to the grow-out areas and reared to the required post larvae size. The principal problems that have to be tackled through this strategy are; combating the issues that have led to the poor image of the industry, regulating brood capture, improving the quality of hatchery post larvae, improving the production and marketing system, reducing the incidence of disease, regulating the processing industry, raising the value of the end product, ensuring that the quality of the exported shrimp meets the requirements of the buyers and revising the fiscal policy to lead to more balanced development of the sector.
with yields averaging around 336kg/ha. The harvesting starts in August and continues until November and December. The size of prawn at harvest is usually around 150-200g. The growth in production is due to an abundance of low-lying floodplain land suitable for cultivating golda combined with management techniques that combine its production with finfish, rice and vegetables in a modified rice field (known locally as a gher). Integrated rice cum prawn and fish culture systems have higher levels of productivity and profits compared with mono-crop systems and reduce the vulnerability of poor and marginal households. Most of the farms are found in the south west although the technology is spreading rapidly to other coastal and inland areas. The total area under cultivation is estimated to be around 30,000 ha (compared with 170,000 ha used for growing Penaeus monodon). The rapid expansion has, however, caused some concern, as wetlands are being increasingly encroached to develop golda ghers. These encroachments have cut off natural drainage of wetlands and allowed for commonly owned land (khas) to be appropriated by individuals, often wealthy elites. Development has been constrained by the reliance on post larvae from the wild though this is changing with the recent development of golda hatcheries and their improved management. Other constraints found in the bagda sector where infrastructure is required for water management do not affect the golda sector because the farming system relies heavily on rain water rather than saline water brought in by canal. The negative image of the shrimp industry is largely due to social problems found in brackish water shrimp farming areas, but golda has been tarnished by the same brush. It therefore has the task of trying to differentiate itself and sell to a different niche market as a more environmentally friendly, pro-poor system that does not have the same issues of social injustice prejudicing it.
This ratio is based on foreign exchange rates, prices of shrimp in foreign markets and the opportunity cost of producing shrimp in Bangladesh. If the Resource Cost Ratio is less than 1 then there is a comparative advantage to producing and exporting a particular commodity.
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Box 2: The US Bioterrorism Act This was signed into US law on 12 June 2002 and will be implemented on 12 December 2003. The law has 4 major provisions designed to give FDA additional information about the food intended for consumption in the US and the facilities that handle food. The rules requires that: 1. 2. 3. 4. All domestic and foreign facilities that manufacture, process, pack or hold food for human or animal consumption in the US must register with the FDA by 12 December. Applies to shrimp farms, suppliers, processing and packaging plants and exporters. US importers or purchasers must submit to the FDA prior notice before imported food arrives at the US port of arrival. Authorises FDA to detain any article of food for which there is credible evidence or information that the article poses a threat of serious adverse consequences or death to humans or animals. Requires manufacturers, processors, packers, transporters, distributors, receivers, holders and importers of food to keep records identifying the immediate previous source from which they receive food as well as the immediate subsequent recipient to whom they sent food.
Box 3: The EU Farm to Fork Policy The European Commission has identified food safety as one of its top priorities. The White Paper on Food Safety of January 12, 2000 sets out the plans for a proactive new food policy: modernising legislation into a coherent and transparent set of rules, reinforcing controls from the farm to the table and increasing the capability of the scientific advice system, so as to guarantee a high level of human health and consumer protection. The Strategic Priorities of the White Paper are: to create a European Food Safety Authority to consistently implement a farm to table approach in food legislation to establish the principle that feed and food operators have primary responsibility for food safety; that Member States need to ensure surveillance and control of these operators; that the Commission shall test the performance of Member States' control capacities and capabilities through audits and inspections.
Importation and manufacture of shrimp feed Transportation Manufacturing of ice Processing Marketing Exporting
In future, the Government will need to change its mode of operation in order to create a facilitating environment that promotes a strong and competitive private sector as emphasised in the iPRSP.
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Policy Environment
The direction, management and control of the sector take place through a number of policies, ordinances and acts that have been drawn up by different departments and ministries over the years. These however are poorly coordinated and merely reflect a wish list with little real ability to implement them. The most relevant ones to the shrimp sector are: National Fisheries Policy (1998)
For commercial fisheries: Marine Fisheries Ordinance 1983 FAO Code of Conduct for Responsible Fisheries (Marine) For production / land management: National Rural Development Policy (2001) National Land Use Policy (2002) National Agricultural Policy (1999) Shrimp Estate (Mohal) Management Policy (SEMP), 1992 Land Management Manual (LMM), 1990 FAO Code of Conduct for Responsible Fisheries (Aquaculture) Coastal Zone Policy (Draft 2003)
For water management The National Water Policy (NWP), 1999 For industry development Industry Act ,1991 For quality assurance The Fish and Fish Products (Inspection and Quality Control) Ordinance, 1983 (as amended 1997) For Environmental Protection Embankment and Drainage Act 1953 Environmental Policy and Implementation Plan (1992)
The formulation of most of these policies was done largely in isolation from other stakeholders. However in recent years this isolationist approach has been changing and recent policies offer a more holistic approach. Despite this there is still little coordination and many conflicts exist between policies which confuse areas of responsibility for implementing the management of the resource. Recently the acceptance of the Shrimp Action Plan in support of the post larvae sector has provided useful guidance for the development of the post larvae supply side of the industry.
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2.2.3 Environment
Many farms use water that is passed on from other farm outflows and the issue of contaminated discharge is potentially a serious issue if production systems become intensified. However, under the current system the BAU found no significant difference between inflows and outflows in terms of nutrient levels. The main issue is one of disease transfer. In some cases, inflow canals might be intercepted and illegal levies charged to other farmers by landlords claiming exclusive access to the canal systems. The Embankment and Drainage Act 1953 is the only mechanism by which environmental protection from shrimp farming can be enforced. The Act allows for impacted farmers to prosecute shrimp farmers if the land becomes contaminated by seawater. Apart from this area, there are no other environmental support measures and no requirements for Environmental Impact Assessments, nor any form of monitoring of existing holdings (Code of Conduct for Responsible Fisheries).
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Accelerated Depreciation in lieu of a tax holiday is allowed at a rate of 80% for businesses located in Chittagong division, and of 100% for units operating in Khulna and Barisal Division. This applies to the actual cost of machinery or plant from the year the business starts commercial production, with 20% and 0% depreciation allowed for the following year for the two respective areas. Advance Income Tax is collected on exports at a rate of 0.25% instead of the normal rate of 3%. For shrimp hatcheries and processing plants, there is a complete exemption from advanced income tax. Other Exemptions 1. Exemption of income tax on interest of foreign loans 2. Exemption of tax on royalty, technical know-how and technical assistance fees etc. 3. Income tax exemptions on foreign technicians employed in shrimp businesses for a period of 3 years 4. Remittance of 50% of the salary of foreign nationals employed in approved industries.
Indirect Taxes No import duty, VAT or any type of tax is applicable for shrimp plants exporting 100% of their products. A 5% import duty is to be paid if a shrimp business fails to export a minimum of 70% of its total production. Special incentives are provided to encourage non-resident Bangladeshis to invest in the shrimp sector. Non-resident Bangladeshis investors enjoy facilities similar to those of foreign investors. Moreover, they can buy newly issued shares/debentures of Bangladeshi companies, and can maintain foreign currency deposits in the Non-resident Foreign Currency deposit (NFCD) account. Shrimp exporters are allowed to retain 40% of export earnings for miscellaneous purposes, and exporters consider this an incentive. No Excise duty or VAT while exporting shrimp products. Government Land has been leased to shrimp entrepreneurs in the past at a leased land cost of only Tk 6,000 per acre in contrast to commercial rates for similar land of as much as Tk 50,000 per acre. This equates to an implicit subsidy of 88%, but it is not known how widespread this practice is, and how many, or what proportion of shrimp entrepreneurs have benefited. Loans and Interest Rates are provided with working capital loans from the countrys banking system at interest rates of 9-11% in contrast to usual commercial lending rates of 15-16%. The implicit subsidy is around 40%. Processing plants were provided with a special loan of Tk 4M in 1997, at the concessionary interest rate of 9%, for purpose upgrading their plants to meet the European Union HACCP standards. Long-term credit facilities are also allowed on liberal debt-equity ratios by the countrys banking sector.
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Interest exemptions to the tune of 80% of working capital loans on shrimp exporting companies were waived for 1997 and 1998 by the nationalised banks (40%) and the Government (40%), to compensate for the damage of flood and cyclones affecting the sector. The Government has also recently committed to providing financial assistance to processing companies due to low international prices that have affected profitability, but it is not yet known what format this Government assistance will take.
(Fisheries Sector Review, 2003). Tax exemptions have been a detriment to the sector rather than a help, creating significant overcapacity. There is considerable evidence throughout the world that subsidies of this nature lead to a failure to optimise resources. If tax exemptions are to apply, then they should be directed more towards companies facilitating post harvest initiatives. Fiscal incentives should only be provided to processors adding value to products and increasing traceability with producers.
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A shrimp sector recognised internationally for its high quality shrimp, produced using socially responsible and environmentally sustainable production methods, with support to all stakeholders to ensure its development to its full potential. The strategy adopts a comprehensive approach covering many areas and sets out a series of targets. An important task is to spell out appropriate prioritization and sequencing of actions needed to ensure sustainable development of the shrimp sector and achieve the proposed targets. Within the strategy document several policy and sectoral concerns are set out based on the priorities identified by the stakeholders during the consultations and analysis of the issues. These are addressed through a series of specific objectives shown below. The strategy is further elaborated on in the following sections of this document and a detailed Action Plan will be prepared once the strategy is finalised.
To put in place the regulations to ensure the sustainable increase in the supply and value of shrimp from culture systems enhancing earnings for farmers, improving the socio-economic conditions of local communities in shrimp farming areas and increasing foreign exchange earnings.
To ensure that shrimp production takes place only in areas where the prevailing agro-ecological conditions are suitable and that it does not adversely affect the interests of other land and water user groups or cause environmental harm. To develop a management plan that regulates the collection of wild fry to conserve the resource whilst balancing the needs for livelihood protection for shrimp fry collectors.
1.2
Area Development and Zonation Wild Post Larval Collection Hatchery Certification and Registration
1.3
1.4
To establish a sustainable hatchery sector which through registration and certification ensures quality management of the hatchery process and ensure adequate production of post larvae which meets, and is responsive to, the growers demands for quality (with assurance of health and viability), without causing detriment to the environment. To develop a sustainable management plan for brood stock collection that ensures hatcheries are able to produce quality post larvae to meet the needs of the sector without causing detriment to the environment or wild stocks. To regulate and stabilise the marine shrimp trawling efforts to sustain its viability whilst ensuring that marine resources are conserved through compliance of regulations and the control of artisanal ESBN fishing. To raise export earnings by improving the quality of shrimp products to ensure that shrimp is produced in compliance with the food safety or HACCP rules, the Human Rights and Labour rules and environmental 16
1.5
1.6
1.7
Quality Control
codes as well as, improving the traceability of shrimp products at all points of the value chain from hatchery through to farm, marketing, and processing factory.
1.8 Quality control and certification
To establish a quality control system for the industry that combines the authority of Department of Fisheries in quality assurance together with the need for self regulation and quality control by the private sector. To provide effective Government quality control procedures that will guarantee shrimp produce placed on the market is safe to human health and exported shrimp produce complies with the relevant food laws in importing countries. To upgrade and maintain an export licensing system that ensures exported shrimp products fully comply with international food laws. To provide a national license and registration system for all shrimp operators from hatcheries through to farmers, processors and exporters to ensure traceability within Bangladesh shrimp supply chains.
1.9
Food Safety
1.11 Traceability
2. Support to industry In support of the Private Sector, provide the services that will lead to a sustainable and equitable development of the shrimp sub-sector. 2.1 Extension To form an effective two way flow of knowledge and information that will enable all stakeholders to develop the sector through the prudent application of knowledge. To improve the relevance of research to the needs of the sector and to develop mechanisms which will improve the uptake and application of key findings. To ensure that the development of the sector is supported by suitably qualified human resources who are equipped with the necessary skills and expertise. To support the establishment of infrastructure, in areas identified and demarcated for production of shrimp, enabling improved water management and marketing of shrimp. To ensure high quality inputs at affordable prices are readily available at every stage of the shrimp supply chain. To improve the overall position of the Bangladesh shrimp industry in a competitive global market, increasing market share and revenue from shrimp production. To develop an effective disease surveillance, notification and control system to reduce the spread of disease and improve the management of outbreaks of disease. To preserve the biodiversity and environment of coastal aquatic habitats while not depriving people of the right to make a living in those areas.
2.5 2.6
2.7
2.8
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3. Collaboration and participation To ensure the participation of all stakeholders who, through their collaboration and clear understanding of their role, will contribute to a sustainable and equitable development of the shrimp sub-sector. 4. Structures, Staffing and Resources Develop and utilise the staff resources in the most effective fashion to support the services and regulatory enforcement required to develop the sector in a sustainable and equitable way. 5. Planning, Monitoring and Evaluation To ensure that the objectives of the sector are being met and that management and planning of the sector is based on sound information collected and evaluated from all stakeholders.
Shrimp trawler: 3,186 tons for export Artisinal Capture Domestic consumption Export Earnings (DoF statistics) Total: 84,773 tons Inland: 55,965 tons Artisanal: 28,808 tons Total EPB 2002-2003: Tk17,199 million (US$297 million) Bagda: US$233,million for 23,409 tonnes Golda:: US$54 million for 6,688 tons White and Brown US$10 million for 3,344 tons
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Source: Fisheries Sector Review 2003. Source: Fisheries Sector Review 2003.
Source: DOF 2003 from production gains and value addition with improved post harvest handling and processing 30 from production gains, doubling of land under cultivation and value addition from improved post harvest handling and processing and sales to niche (organic) markets.
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Current Bagda: Tk81,519 (includes finfish and mud crab) Net revenue per hectare: Tk37,567 Golda: Tk110,000 (includes finfish). Net revenue per hectare: Tk75,000
Target 2010 Bagda: Tk160,00032 Net revenue per hectare: Tk100,00033 Golda: Tk220,00034 Net revenue per hectare: Tk180,00035 Total employed persons Full time equivalent Bagda: 190,000 Golda: 120,000 Marine: 3,000 Others: 15,000 Total: 328,00037 Fry Collectors: 100,000 Bagda: Hatcheries: Capacity: Production: Wild Golda: Hatcheries Capacity: Production: 500 5,000M 5,000m 35 7,000m 6,000m 1,000m 1,000,000 313,000
Total employed persons Full time equivalent Bagda: 94,342 Golda: 58,333 Marine: 3,000 Others: 10,265 Total: 165,904 Fry Collectors: 185,000
600,000 156,000
Bagda: Hatcheries: 55 Capacity: 10,000m Production 2004: 5,000M Market demand at 2004 utilisation rates: 5,000M PL. Wild PL: 2,000 M Golda: Hatcheries: 30 Capacity: 50M Production 2004: 50M Market demand at 2004 utilisation rates: 500M PL
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From production gains From production gains, reduced input costs and improved management techniques 34 From production gains 35 From production gains, reduced input costs and improved management techniques
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Job creation through increased no of Golda farms, post harvest trading opportunities, hatchery fry trading, golda hatcheries and feed factories.
38 39
37
Full time equivalent employment: Bagda farms(94,342), Golda farms(58,333), Processing factories(3,260), Post harvest Farias(2,205), Depot operators(1,812), Hatchery fry traders(746), Bagda hatcheries(536), Golda hatcheries(231), Commission agents(167), Feed factories(115). Source: Fisheries Sector Review 2003.
Source: Fisheries Sector Review 2003. Source: Fisheries Sector Review 2003.
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Regulatory Framework
In support of the Private Sector ensure the development and implementation, by all stakeholders, of a legal and regulatory framework that will lead to sustainable and equitable development of the shrimp sub-sector.
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collaboration with MoL, BWBD and DoEF would also help to ensure compliance with future standards and traceability requirements. The priorities are therefore to increase shrimp production, improve disease surveillance, improve management and control, support the participation of farmers in traceability programmes, protect bio-diversity and critical coastal and inland wetland ecosystems, and ensure the sustainable use of resources, food security and equitable rural development in the coastal zone. This will necessitate upgrading Department of Fisheries monitoring and regulatory functions as well as improving management structures to be more responsive to local priorities and developing information systems (monitoring, market and statistical data) to optimise management regimes and plan future growth. This will necessitate re-organisation of the administrative control structure to facilitate development at the Upazila level. Effective coupling of shrimp sector development to poverty reduction could take place through a special emphasis on industry segments associated with pro-poor growth such as the freshwater prawn sector. There is a need to establish the necessary infrastructure and human resources to ensure adequate testing of exported aquaculture products takes place prior to export, provide an overarching regulatory and enabling environment as well as develop measures to prevent fraud and regulate the proliferation of labels. Where shrimp farming is associated with conflicts and rights abuses, there is an urgent need to improve law and order and introduce coastal planning and management in areas where shrimp are produced.
quality and other environmental factors. It is also important that fragile coastal ecosystems such as the Sundarbans mangroves are protected from the potential adverse effects of upstream shrimp farming activities. Moreover, in many areas, the requirement for saline water for shrimp cultivation within the coastal polders creates tensions between rice growers and shrimp farmers. The need to address these issues and for a strengthening of DOFs capacity to support sustainable shrimp sector development is emphasised in the iPRSP The unplanned shrimp culture development, which has led to social and environmental problems, will be addressed through well-informed decisions based on studies carried out under the Fourth Fisheries Project and available research. The capacity of the Department of Fisheries will be strengthened so that it can play its due role in participation and cooperation with local communities and the private sector. Coastal zoning provides an opportunity to improve land use planning, minimise conflicts over land tenure and identify appropriate areas for shrimp farming and areas that need to be protected (for grazing of livestock, common access, drainage canals etc.). The objective of land zoning in the coastal zones is to optimise land use. This should encompass integration of water and land use taking into consideration the interests of all users and at the same time ensure that important ecosystems and common property resources are protected. In particular, it is important to improve the coordination of shrimp and paddy cultivation and to identify Khas land for allocation to the poor, a critical issue for poor communities in shrimp producing areas. The zoning process should therefore involve active participation from all stakeholder groups. One of the shortfalls with the existing policy and legislative framework is that the current rules do not adequately take into account the interests of key stakeholder groups. For example, under existing rules, land suitable for shrimp cultivation will be declared as Shrimp Mohal (no distinction has been made between government (khas) and private lands) and leased out to individuals with the capital and expertise necessary for shrimp cultivation. This ignores the rights and entitlements of landless people provided for in the Khas Land Settlement Act. There is a need for the Shrimp Mohal policy to be more closely harmonised with the Khas Land Settlement Act to protect the rights of the landless and also with the National Fisheries Policy to ensure that Khas land declared as shrimp Mohal should, where possible, be cultivated using integrated methods (rice/shrimp/fish or shrimp/salt etc) ensuring that shrimp crops are harvested before August in areas where rice can be cultivated. Improving the existing system requires close coordination with other ministries (Land, Water, Environment and Forest etc) and the expansion and activation of the Central Shrimp Cell of the Ministry of Fisheries and Livestock to field levels.
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d) In areas where rice can be cultivated, shrimp crops grown on leased land shall be harvested by 31st July. e) Improved measures will be introduced to prevent unauthorized gher/farm expansion (golda and bagda) onto government khas water bodies, important wetlands and mangroves. f) Improved measures will be introduced to stop the unlawful practice of leasing drainage canals. g) Improved measures will be introduced to protect the rights of landowners who do not agree to lease their land for shrimp farming (in accordance with the Private Fisheries Protection Act, 1899). h) Improved measures will be introduced to protect public access rights to common fishing grounds and grazing lands in shrimp farming areas. i) Monitoring on the compliance of the regulations must be carried out. Independent organisations such as advocacy NGOs will have an important role to play in this respect.
catch levels taken in post larvae collectors nets. No attempt was made by Government to make the ban area-related, gear-related or time-related. The effects of large by-catch death rates from post larvae collectors on biodiversity is not yet proven and the iPRSP advocates a more balanced approach ensuring that policies affecting natural resource utilisation strike a realistic balance between the existing livelihood requirements of the people and sound environmental resource management that can ensure sustainability. It is anticipated that market forces will reduce farmers desires for wild bagda fry, and that this market will be insignificant within the next 5 years. For this reason it is probably sufficient to implement seasonal, locational, gear-specific bans to protect high by-catch sites at key times. Options for management could include letting the rise of efficient bagda hatcheries bring market forces into play and gradually erode the demand for wild caught post larvae. FAOs Code of Conduct for Responsible Fisheries precautionary principle suggests that preservation of biodiversity should be paramount. There is also significant scope to improve the survival rates of shrimp fry that are marketed. A significant reduction in fry collection pressure could be achieved by reducing the mortality rates of the fry that are caught. Currently it is estimated that up to 40 percent of the fry are lost from the time they are caught to the time they are stocked in a farmers pond. Survival rates can be improved by promoting better practices in gear operation, fry sorting, holding fry, controlling conditions under transport, and stocking and pond management practices.
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c) Awareness campaigns need to be continued through various media and Department of Fisheries/ civil society extension networks and traditional rural structures.
e) Standards for labelling should be established and a practical mechanism for hatchery post larvae batch traceability are established and promoted for use. f) Subsidies to the Bagda hatchery sector have led to overcapacity and inefficiencies in the sector and should be redirected/restricted to Golda Hatchery production until capacity reaches the point where market demand is satisfied. g) Expand on the development of golda hatchery production. Growth in this sector should not be haphazard and the concept of a production cluster should be examined h) Environmental standards for hatchery effluents should be included in the codes of practice. i) Fiscal incentives will be provide only to hatcheries which test broodstock and post larvae for virus infection using PCR (Polymerase Chain Reaction). Secondary Issues A national reference laboratory is set up and would be responsible for further development of laboratory protocols and standard improvement. Foster the emergence of independently accredited private laboratories (mostly operated by the hatcheries). Establish domesticated Specific Pathogen Free (SPF) varieties of commercial shrimp and prawn species for use by the industry. Ways should be found to persuade hatcheries to be more reactive to needs of farmers in terms of timing of fry availability. Develop a hatchery registration process linked to the development of codes of practice that both establish a minimum standard to which hatcheries are operated and to provide higher levels of quality management to which the hatcheries should aspire.
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c) d) e) f)
Restrict brood collection to the months of January to May, Enforce the marine sanctuaries already declared, Define geographical areas suitable for brood collection Enforce the ban on shrimp trawling for commercial catch during mid-January to midFebruary,
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international trade and marketing. However, there are high transaction costs associated with these codes and a need to ensure they take into account local conditions in Bangladesh. Any move towards adoption of Codes of Conduct, certification of aquaculture products, and integrated supply chains, with trace-ability, therefore, has significant implications for producers in Bangladesh. There is concern particularly that small-scale producers operating low input farms may face difficulties in participating in such market chains. Efforts here need to focus on mechanisms to strengthen the organisation of the smallholder sector, to strengthen forward linkages to the post harvest chain and processors and raise their capacity to comply with emerging standards. The emergence of private certification schemes in Bangladesh highlights the changing roles and responsibilities of Government and the private sector. Although the responsibility for validating exported shrimp products as safe rests with the respective Governments many buyers are increasingly asking for higher levels of quality and safety guarantees and international third party certification. The Indian Government now accepts third party certification as the norm because standards demanded by the buyers are higher than those the Government would normally comply with. Moreover, the private certification agencies are increasingly developing systems of process certification which has evolved from a recognition that product certification does not address issues of traceability and social and environmental concerns. In this context, the role of the Government is to provide the overarching regulatory and enabling environment to ensure that third party certification can be undertaken successfully as well as develop measures to prevent fraud and regulate the proliferation of labels. The regulatory framework for this section divides into three sections: quality control and certification. food safety, and traceability,
There is also a need to promote greater confidence in the decision making process that underpins food safety laws for shrimp exports particularly the structure and independence of the institutions protecting health and other interests. Finally, there need to be a better systems in place to identify and respond to food safety problems.
Regulatory framework
a) The Department of Fisheries should ensure that private certification schemes do not conflict with national policies and regulations and are accredited with leading internationally recognised standards.
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Support measures
a) The private sector should take increasingly more responsibilities for ensuring quality of their own products and of the raw materials they receive. b) The private sector should be encouraged to establish an effective and self-sustained institution to develop and operate a seal of quality for the shrimp products. c) The seal of quality should arrange international recognition that will elevate the image and credibility of Bangladesh products in the international market d) The existing quality control system of GoB should be consolidated and adapted to effectively support and verify the accuracy and transparency of the private quality control system. e) National codes should be established for all major stages of the industry, e.g., hatchery(brood and post larvae screening or WSV, antibiotics etc), farming including water management in private farms, processing, feed mills, ice plants and the transport process. f) All positive measures and changes should be regularly publicized nationally and internationally by using electronic media, TV, newspapers and other news media and also by direct interactions with the buyers to elevate the country image g) In all possible areas there should be private public sector collaboration for quick development h) Credit should be made available to help stakeholders comply with regulations. i) The Department of Fisheries should support measures to improve testing facilities to ensure all hatchery fry are certified disease free j) The Department of Fisheries should support private certification programmes and monitor their implementation and effectiveness. k) The Department of Fisheries should develop a plan with industry to ensure that certified virus free mother shrimp are used in hatcheries. l) The Department of Fisheries will examine mechanisms by which ice can be readily accessible to groups of farmers.
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g) The Government will introduce surveillance and control of shrimp supply chain operators at all stages of production, processing and distribution. h) The government will test the performance of private sector control capacities and capabilities through audits and inspections. Note: The Department of Fisheries shall enforce food laws and regulations, and monitor and verify that the relevant food laws are fulfilled by shrimp business operators at all stages of production, processing and distribution. The costs of monitoring should be met by charges levied on the sector. Penalties and measures will be applied to operators found to be infringing food law. A Food Safety Authority should take on the role as an independent scientific point of reference in risk assessment of food safety for the whole shrimp supply chain. The Authority would be a source of advice, information and risk assessment to improve confidence with importing countries. It would also contribute to the development of food safety standards.
Support measures
a) Department of Fisheries will implement improved measures to prevent the inadvertent or deliberate contamination or adulteration of shrimp feed during production, manufacture, transport and distribution of shrimp feeds. b) An awareness programme will be introduced with immediate effect to inform all facilities that manufacture, process, pack or hold shrimp destined for consumption in the US or EU of their obligations under the relevant food safety laws. c) Enhance capacity and strengthen mandate of competent authority to implement food safety regulations. This will require measures to improve monitoring and surveillance of food safety and the development of improved information management systems. d) The capacity of Department of Fisheries to ensure effective residue monitoring will be strengthened. e) Expand and strengthen capacity of Department of Fisheries to carry out its inspection functions of processing plants, depots and farms. f) Department of Fisheries will provide incentives and other support to ensure improved handling, transport and marketing of shrimp products from farm to processing plant. g) Department of Fisheries will support the development of self check systems for industry.
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4.8.4 Traceability
Objective: To provide a national license and registration system for all shrimp operators from hatcheries through to farmers, processors and exporters to ensure traceability within Bangladesh shrimp supply chains.
Support measures
a) The Department of Fisheries in partnership with other implementing agencies will support and facilitate initiatives that improve traceability e.g. backward linkages from processing plant to depots and farms or contract farming, strengthening of trade associations and improving the horizontal and vertical linkages between them. b) The Department of Fisheries will provide identity cards to all registered shrimp farms and depots. c) The Department of Fisheries will support the development of an all-industry associations promoting the development of an apex industry organisation representative of the whole industry. d) Department of Fisheries will conduct a logistical study to examine ways and means by which product flows from gher to processor can be enhanced. e) The Government will provide fiscal incentives to processors increasing traceability with producers.
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In support of the Private Sector, provide the services that will lead to a sustainable and equitable development of the shrimp sub-sector. The industry is controlled by the private sector, and its growth can only be directed through support and the regulation of its activities. This can either be by the industry itself or by support and controls through the services provided to the industry by the government and other support services such as educational institutes and the NGO sector. This section will look at the strategies needing to be employed to provide a vision of the support the sector will require to achieve its overall goal.
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5.2 Extension
Objective: To form an effective two way flow of knowledge and information that will enable all stakeholders to develop the sector through the prudent application of knowledge. National Fisheries Policy 7.4 Highest priority will be given for the culture of shrimp by improved traditional method. However, eco-friendly semi-intensive culture systems shall be encouraged in controlled and feasible areas. The expansion of shrimp culture by mangrove destruction or by methods of shrimp culture that are harmful to the mangroves will be prohibited. In order to ensure ecological balance, tree plantation will be compulsory for owners of shrimp farms in the shrimp culture areas around the polders and on the land in between the polders and rivers. 7.12 Emphasis will be given to increase shrimp production by developing appropriate technology. Big farms will be encouraged to convert into smaller more manageable units by improvement of water supplies and drainage facilities.
The present low levels of production can mainly be attributed to the lack of knowledge by many of the shrimp producers. Through an appropriate extension service this knowledge could be raised. The production levels achieved in some of the neighbouring countries can only be aspired to by a few, as the risk involved and the inputs and infrastructure at present remain beyond the capabilities of most. The approaches used for extension for shrimp are as laid out in the Aquacultural Extension Strategy. Many of the limitations of staff shortages, inadequate funding and poor linkages are as true in the shrimp sector as in the wider aquaculture sector. To counter these, the shrimp sector must use all of the resources available, collaborating with local government and other local service providers such as the DAE and the DLS. As with the Aquaculture Extension Strategy the focus of extension work for support to the shrimp sector must be on; peoples participation; decentralisation of planning; partnerships and cooperation. As discussed earlier, the image of the industry needs to be addressed and its important that extension supports these objectives of ensuring that production is achieved without affecting the quality of the shrimp; of the food safety of the produce; that the environment is not adversely affected either through destruction of mangroves, or through the salination of land; or that changes in the production system do not cause any social injustice. Varieties of extension approaches: Extension is based on the needs of farmers and is determined through locally designed strategies for dissemination of information, Extension is carried out by/through a variety of agencies and partners, Extension advice is disseminated through multiple channels, Secondary extension agents should be encouraged including farmer led extension, Extension services provided by the private sector and secondary extension agents should be encouraged, but they require to be monitored and supported by Department of Fisheries to ensure that they do not cause the farmers to become entrapped through tied linkages Different extension approaches should be adopted for bagda and golda. These should relate to how the different systems support efforts to tackle poverty, and environmental concerns
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Department of Fisheries should support, coordinate and monitor all extension activities It would also create a pool of fisheries technicians like health technicians and the Block Supervisors of DAE, to cater to the needs of the sector
The National Fisheries Policy advocates that an improved extensive system of production be followed, however no clear definition of this system is available. It is important to understand the boundaries of this system and what constitutes moving to a semi intensive system. An extensive system is broadly a system that: stocks at the rate 5 post larvae per m2 Sustainable increase of coastal aquaculture productivity:Improved-extensive culture system will be encouraged Semi-intensive culture may be allowed in limited area with the provision of EIA Small scale farms will be encouraged to make farms more manageable and increase unit area productivity Develop improved production system:Identify clear research priorities based on farmers needs leading to on station testing research, Field testing of adaptive research findings including farmer evaluation of findings Develop code of practices developed from examining best production systems advocated by leading farmers, Department of Fisheries and BFRI in association with private sector. Promote cross access of information through exchange visits and farmer evaluation of different production systems Exploration of local knowledge and adaptations of practices, under different local conditions Improve the access of the farmers to information from all sources, ensuring that all stake holders have equal access, Develop multiple channels for extension dissemination and awareness creation, Improve the quality of the information being extended to farmers, Ensure that extension systems are responsive to developing needs of the sector Rewarding or providing incentive for best practitioners by the industry Ensure support systems i.e. inputs and credit are linked to production cycle
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develop web based information on key issues including current market information,
NGO NGOs are increasingly playing an important role in extension. This was driven from their desire to deliver credit, but there is increasing demand for these two to be kept separate. In addition the NGOs also play a key role in advocating systems that are environmentally friendly and socially just. The roles of the NGOs should be: encouraged to develop capacity and acquire skills to provide extension and farmers training at village level, encouraged to initiate motivational and awareness programme at local level enabling farmers to effectively participate in the extension process, ensure that farmers and CBOs are able to articulate their needs for extension support, Private Sector The need for the private sector and LGBs to encourage shrimp production is linked to their desire to increase quantities of shrimp for processing and to increase the market for their products such as fish feed. The private sector should be: link in with other extension providers to provide an integrated responsive network, encouraged to gradually share in the extension and training responsibility, encouraged to involve in awareness programme supporting the emergent need of the industry, Farmers or groups of farmers/stakeholders will be encouraged to share ideas and knowledge from where knowledge gaps (training need) can be understood and linked to the backstopping support form Department of Fisheries. SHAB and BFFEA will be encouraged to promote contract farming system through their membership in association with the progressive farmers and farmer associations. External Partners Development Projects (both foreign aided and govt. funded) which promote communitybased activities through CBOs and LGBs. International organizations engaged in extension and training will be encouraged to undertake site-specific extension and training activities suitable for the coastal areas.
5.3 Research
Objective: To improve the relevance of research to the needs of the sector and to develop mechanisms that improve the uptake and application of key findings. If the sector is to combat some of the many technical problems and social problems besetting it, then more focused research is required. The current research programme is constrained by shortage of research funds and scientists adequately skilled in researching the full range of problems besetting the industry. It is therefore important to utilise all of the stakeholders who can undertake research to support the needs of the sector. This will require collaboration between several diverse organisations. In order to achieve this: ensure those best able to undertake the work are employed for the task, ensure that there are adequate resources to undertake the required research, Research planning meetings need to be held annually together with result and information dissemination workshops,
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Key individuals in each involved stakeholder organisation should be nominated as contact persons to ensure a cadre of skilled researchers and planners help develop and relevant programmes.
A critical constraint to research is the inadequate funding received for all organisations. A range of different funding should be sought including competitive government funding and contracted research by the industry. In addition low cost research by field practitioners and farmers should be acknowledged and used to help provide solution for simple field based problems. Technical Research The principal organisation mandated to undertake research for the fisheries sector is the BFRI. Research stations in Paikgachha, Coxs Bazaar and Chandpur are ideally placed to conduct research covering the three shrimp systems. Currently many of the research needs are not met. BFRI should: Bear the major responsibility to carryout the research needed by the industry. Plan a major thrust on farming systems research to meet dynamic needs of diversified farmers stretched over the coastal areas. Undertake specific research to establish effective procedures for coastal aquaculture management. Develop special research initiative to assess and monitor the environmental impacts of aquaculture activities comprising water extraction, land use, salinity intrusion, discharge of effluents and use of drugs and chemicals. Be given impact assessment and monitoring type of research responsibility for the Department of Fisheries projects under 'research component' to enable immediate feedback and undertake necessary mitigation measures. Develop participatory process and regular field monitoring to identify suitable research areas. Department of Fisheries, BWDB, WARPO, SRDI, DAE should be invited to participate annually to prioritize suitable research areas and appropriate planning and designs. Interact with BFFEA, SHAB, Shrimp Fry Traders Association and Farmers Association to assess contemporary training needs felt by respective stakeholders. Undertake adoptive research on proven technologies from neighbouring countries at farmer's fields. Develop and make accessible a comprehensive database on contemporary research findings from home and abroad. Actively seek the collaboration of other research organisations to ensure research needs are addressed. In support of the BFRI the role of the Universities is becoming relevant to resolving the research needs of the sector: The broader role of the universities will enable them to undertake research on other issues such as the economics of the industry and some of the social issues. Public universities should be encouraged to undertake research initiatives to protect and develop coastal aquaculture resources. Senior faculty members will be encouraged to undertake research activities on crucial technical, economic and social problems facing around the coastal areas. Thesis students doing Masters and Ph D from universities will be encouraged to undertake applied research related to the coastal resource development. Faculty members from universities will be encouraged to undertake collaboration projects on coastal environments with foreign universities and International Research Organizations.
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Strategies to counter funding constraints should draw on the systems developed by the SUFER project
Other Research Organizations: National and International organizations engaged in research and training will be encouraged to undertake site specific research activities suitable for coastal areas. National and International organizations will be encouraged to undertake action research in farmers fields. Policy and trade issues should be studied by organisations such as CPD, Other organisations such as BCAS, BIDS, IUCN should be supported to carry out research on environmental and social issues,
5.4 Education
Objective: To ensure that the development of the sector is supported by suitably qualified human resources who are equipped with the necessary skills and expertise. There is a need to determine the current and potential skill requirements for the sector and compare these with existing skill base. The development of the capacity to implement the strategy is important if the goals set out are to be achieved. Academic Although recent trends have seen a proliferation of courses on aquaculture, few offer the required specialisation required for the shrimp sector. If the industry is to develop successfully then more attention must be given to ensuring that the needs of the sector are determined and that the training institutions develop the courses required to fulfil these needs. Courses at degree and post graduate levels need to be formulated for the shrimp industry, Courses need to cover the full range of issues from stock assessment, breeding, production, marketing and processing, Social issues also need to be included to improve the community participation in management of the resources, Universities should develop short refresher courses to update the skills of the key players. Technical At present many of the technical positions in the production of shrimp post larvae in hatcheries are staffed by Indian, Thai, Philippine or other Asian nationals. There is an urgent need for Bangladeshi nationals to be trained to take over these tasks and build up local capacity. Additionally in the processing industry the skills found in ensuring quality control are limited and are not adequate to meet the increasing demands of the importers Improved technical training for local staff involved in post larvae production Training in the improved management of shrimp production Training in the improved detection and control of shrimp related disease Improved design and construction of infrastructure Improved training for staff involved in the sectors quality control and laboratory facilities The Marine Academy should offer short courses for technicians in hatchery production for both bagda and golda, Education and training should not be seen in isolation from HRM/D. It is important that staff with the relevant skills are recruited and that they are able to develop a career in the shrimp sector. 39
Systematic HRD strategy for Department of Fisheries and partner organizations Development of training manuals, handbooks and CD Develop expertise from beneficiaries Utilization of Training Centres for local level HRD
5.5.2 Marketing
The infrastructure required for improved marketing range from improved depots, cold storage facilities, ice production plants, roads and power supplies. The later falls on the local government support and requires that decisions are taken by local government in support of developing this 40
infrastructure. The provision of depots, ice plants requirements etc. have generally been fulfilled by traders involved in marketing, but these have been limited by the availability of credit. However the requirements for credit to develop the infrastructure for golda expansion is more limiting as production is more wide spread. Support must be made available to: Provide credit for small loans to develop marketing infrastructure Develop guidelines for infrastructure development to ensure the best Ensure that the infrastructural needs are including in local development plans
5.5.3 Finance
The development of water management infrastructure for the production sector relies on finance either from the government or from donor assistance. At present these are both restricted. The governments financial support is aimed at either the processing or hatchery operations whilst the support from donors for these types of activities is declining as they are not seen to be supporting the poorest members of the society. Development of infrastructure for marketing receives no government, nor does it receive much support from the formal credit agencies. GoB needs to redirect much of support from the processing and hatchery sectors to support for the productive sector, Credit facilities should be made available at favourable terms for the development of small infrastructure that will enhance the quality of the sector, GOB will assist in the implementation of such programmes with financial and technical support
5.7 Marketing
Objective: To improve the overall position of the Bangladesh shrimp industry in a competitive global market, increasing market share and revenue from shrimp production. Background Marketing of shrimp is in two distinct phases. The first is post production up to the processing plant. The second is after processing and is primarily for export though limited quantities are sold on the domestic market. Post production marketing is seen as one of the key areas that need to be developed under the strategy as loss in quality primarily occurs due to the weak marketing chain. From the farmer to the processor there can often be 3 or 4 middlemen who exert a strong control on the industry in determining the price the farmers receive and which processing plants receive the product. Rationalise the market chain to limit numbers of transactions, 41
Encourage group marketing to improve bargaining power of farmers, Improve marketing infrastructure, depots, transport facilities etc. Ensure that HACCP regulations and Bio-Terrorism act of USA, SPS measures of the WTO,.are understood and adhered to, DoF will ensure adoption of the measures to remove the Nitro furan and Chloramphenicol from our shrimps Establish monitoring system to ensure compliance of sanitary marketing conditions, Establish credit system to reduce control of traders Develop linkages to research to understand the loss in quality and recommend packages to address the losses Support measures for export marketing Improved utilisation of Commerce/Economic departments of Embassies in importing countries, better linkages between commerce and Fisheries Ministries. Promotion of Bangladesh products at international business fairs, seminars and websites. Improve market research to better understand market needs, consumer perceptions etc. Improve packaging of shrimp products. Support development of direct linkage with importers. Improve capacity of sector to promote the shrimp industry. Improving the image of the shrimp industry and promoting shrimp products in importing countries. Programmes must be undertaken to enhance the equitable distribution of benefits of shrimp exports and local marketing of shrimps. The farmers bargaining power will be established through Empowerment of the communuty (followed by lessions learned from the ECFC project) Awareness build-up with training as well as through the promotion of market chain Undertaking appropriate action plans to eliminate middle-men from the market chain Export growth Value addition. Product diversification. Improved utilisation of by-products. Develop new markets.
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DoF MoFL Commerce Marine Aquaculture /shrimp Local Govt. Shrimp Fisher/Farmer MoE Quality Control BWDB
Traders
MoFL /Department of Fisheries: This organisation has the broadest mandate to support the sector. Its role in regulating the industry from brood collection, hatcheries, production and processing and its support role establish it as the institution best placed to coordinate the sector. It does however have serious shortfalls (see SWOT analysis in Box 4). Department of Fisheries is supported
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through four wings: shrimp, aquaculture, quality control and marine, which must also be coordinated.
Box 4: SWOT Analysis Department of Fisheries Strengths Overall co-ordination role Technically trained staff at DFO level Potential for improved management Increased production potential Small farmers regaining control of their resources Opportunities Bring different players together Sector keen to improve production Access to organic market Improved auditing of social and environmental concerns Weaknesses Limited funds to undertake field activities No mandate for extension in shrimp Confusion in roles of private and govt. sectors Insufficient staff Loss of biodiversity Little connection between different institutions Too much of the wealth of the sector in too few hands Threats Poor global image of shrimp Trade embargoes Increased disease Proliferation in use of chemicals Social unrest Poor governance
MoWA /BWDB: The production of shrimp is reliant on water be it fresh or brackish water. The role of the MoWA/ BWDB in providing access to this water is important as is the infrastructure that has been constructed initially to control salt water intrusion. These organisations should also be part of planning on zoning that should allocate land used for brackish and fresh water shrimp cultivation. Ministry of Land: The Ministry of Land through its field representatives plays a crucial role in its responsibility for land distribution, principally khas land, and for its potential role in determining zones suitable for shrimp. At present both are perceived as problem areas, as the distribution of khas land is often in favour of the rich rather than the poor and the lack of zoning has led to a number of serious conflicts between the pro-shrimp lobby and those who do not wish to engage in the trade. Ministry of Commerce: As the importance of shrimp as an export commodity has grown so has the involvement of the Ministry of Commerce. Some stakeholders have argued that they should be responsible for co-ordinating the sector, however their technical knowledge of the pre processing and marketing phase are limited and it is considered that they would not be able to support the industry effectively at the critical points. Local Government: Local Government and their links to the DC and the ADC revenue play an important part in regulating and promoting the industry at a local level. Their responsibility to coordinate development in local government is crucial to ensure that all stakeholders are united in tackling the problems that the industry faces including environmental degradation, social inequity and unrest. NGOs: The roles of NGOs cover many different aspects from supporting collaboration amongst water users and those under the zone protected by polders; to monitors and advocators for social justice and environmental protection. Credit provided by NGOs is also critical to the development of the small holder sector. NGOs can also play an important role in data and in conducting
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independent monitoring particularly on social and environmental issues as well as in creating collective forums and dissemination channels to raise issues. NGOs can also ensure greater information sharing occurs on key issues so that small producers can respond more rapidly to the changing regulatory and trading environment. Hatcheries: The growth in the number of hatcheries has been phenomenal and now has the capacity to produce bagda post larvae well in excess of the demand, though there is still a shortfall in the golda supply. The hatcheries must now learn to exist without subsidies and be able to show their ability to produce quality and disease free post larvae for the industry and wean the farmers off from their preference for wild post larvae. Processors: The processors are key to the industry as they are responsible for the final product. However the numbers of processors has exceeded the needs of the industry and has resulted in inefficiencies. A rationalisation needs to happen based on commitment, quality and back ward linkages that help the industry comply with the new demands of traceability, social equity and environmental sustainability. Finance The principal beneficiaries of financial support have been the processing plant and hatchery owners. Government support however has been a major cause of over capacity development in these areas and now needs to be redirected. This will require different arrangements as the loans will be required by those with less collateral i.e. producers, depot owners, nurserers and post larvae collectors. Traders: The control exerted over the industry by traders of fry and of harvested prawn is immense and disproportionate to the value they add to the product. Because of the numbers of traders involved, returns to the productive sectors are often limited. Attempts to reduce the lengths of the marketing chains are needed to improve traceability and quality, however these efforts are likely to be strongly resisted by the traders. Much of the control exerted is due to credit offered which requires farmers to enter into arrangements with the traders that result in lower benefits to the producer.
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6.1.3 Decentralization
In the iPRSP, decentralization and devolution of power is regarded as an essential pre-condition for good governance. Decentralization of responsibilities, authority and resources Decentralization of planning, budgeting and implementation Develop guidelines for decentralization
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to be also supported by suitably qualified staff, who may work either as a separate unit or attached to wings such as shrimp and open water. The Regional Shrimp Officer (re-designated), Coxs Bazaar shall be responsible for supervision and monitoring of all shrimp unit activities in the region including those of the private sector hatcheries, nurseries, post larvae collection. Only key manpower shall be retained in the existing shrimp units in Cox`s Bazar and Khulna regions. Other posts shall be withdrawn and allocated to extension units at district and Upazila level. The Extension Units in both the regions shall be headed by the DFOs and supported by SUFO/UFO. The DFOs shall be allocated with one entry- level officer proposed as Shrimp Extension Officer from existing 15 available entry- level positions. Most entry- level positions namely Project Officer, Fishery Officer (Soil), Fishery Officer ( Bio-chemistry), Scientific Officer etc. may be re-designated with mandate of shrimp extension functions. The SUFO/UFOs shall be supported by one Class II post of Assistant Extension Officer. There are some 32 Upazilas in the regions. 15 existing Class II positions (Assistant Extension Officer, Asst. Farm Manager, Technical Assistant ) may be allocated to 15 Upazilas while the remaining 17 Upazilas may be filled up with 17 posts of Field/ Technical Assistants to be upgraded and designated as Assistant Extension Officer. Due to their overlap, staff supporting the Marine sector and Aquacultural Extension will also help implement aspects of this strategy.
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Director
Head Quarter
Shrimp Committee
Deputy Director
(Khulna) A.D. 1
RSO,Khulna A.D -1
Polders,Private Hatcheries
DFO,Satkhira A.D -1
SUFO/UFO x 6 Assistant Extension Officer x 6
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Objective: To ensure that the objectives of the sector are being met and that management and planning of the sector is based on sound information collected and evaluated from all stakeholders. The needs to manage the sector fall under the main objectives of the National Fisheries Policy. These cover production and utilisation of the resource; poverty alleviation and employment generation; fulfilling animal protein demand and ensuring public health; economic growth; and biodiversity conservation. This role of collecting and evaluating information becomes more important as the sector has so many stakeholders, so it is imperative to gain a comprehensive understanding of how the sector is performing. This requires a high degree of co-operation from all stakeholders, including the private sector, who dominate the sector to the poor who are involved at the periphery. It is also increasingly important as many functions undertaken by government come increasingly under private sector control i.e. the monitoring of quality of exported produce. The current management of the sector is based on information garnered from a range of different sources. Some of this information is accurate, however much is not. The quality of information needs to be improvement to ensure that the sector can develop through sound planning and management. By collecting information through a range of different sources cross checks can be built into the information thus improving its reliability. The most accurate information is thought to come from statistics of shrimp exported for each of the different production systems. This however only relates to exports and does not cover local sales and consumption. Information on production levels from the different systems and areas is not accurate as there is no accurate baseline of resources allocated to shrimp production. This as in other sub-sectors of fisheries production, needs to be a priority so that development can be accurately assessed. One of the major concerns of the industry is the image projected to the buyers abroad. In order to improve this then reliable information must be available on issues of social equity and environmental status. This should be used constructively to address issues of concern or provide importers and buyers of the true status of the sector. The Planning, Monitoring and Evaluation of the sector is tied in closely with the strategy advocated under the P,M and E strategy already formulated. This recognises the different sources of information, and also focuses on the required capacity to utilise the information for effective management. Establish baseline of industry, on all aspects from post larvae production, collection, production, processing facilities. Assess improvements in production levels under different production system and benefits from different management systems. Economic assessment of merits of different systems and risks associated with intensification. Impact of extension and advisory services. Developments in organisation and implementation of extension 51
SHRIMP STRATEGY
Ownership of industry, and production units. Evaluation of ownership of production units and impact of gher licensing. Monitor economic generation from the export of shrimps and export statistics. Monitoring the value added through processing. Establish biodiversity and environmental status of resource and impact of developments. Monitor the impact of regulations on environmental pollution and loss of biodiversity. Monitoring and evaluation of the distribution of benefits from the sector Impact of regulations on quality, numbers of shipments accepted or rejected and economic impact of rejected shipments. Disease levels and impact on production Evaluate the impact of support to the industry of government initiatives
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